LONDON, Nov 28 (Reuters) - The oil price collapse pushed Russia’s rouble to new record lows near the 50 per dollar mark on Friday, while currencies in energy producers from Nigeria to Malaysia hit multi-year or all-time lows.
Brent crude has fallen below $72 a barrel after the OPEC club on Thursday decided against production cuts, broadening the divide between energy-producing and -importing emerging markets.
In Russia, where energy comprises two-thirds of exports, the rouble slumped 1.2 percent and headed for its biggest monthly loss since 2009. Moscow dollar-denominated stocks fell 2.6 percent, set for their fifth month in the red.
Russian bonds were also sold off, with dollar debt spreads over U.S. Treasuries at three-year highs and local 10-year yields surging to levels last seen in December 2011 .
“The market reaction is very conventional. We see divergence between the winning countries over the decline of oil prices and the losing countries,” HSBC strategist Murat Toprak said.
“The rouble has overshot - but if the oil price keeps going lower like that, this momentum may continue.”
Three-month forwards meanwhile imply a 10 percent depreciation in oil-rich Kazakhstan’s tenge.
In Nigeria, the naira lost 1.3 percent and dollar bonds fell, just like in Angola .
Earlier, Malaysia’s ringgit hit five-year lows, forcing the central bank to step in.
Societe Generale advised buying Turkish lira versus rouble as a proxy for oil.
“For a vast majority of EM countries, the sharp decline in oil prices may help reduce macro vulnerabilities,” SG wrote. “This means local rates are going to perform strongly in high-yielding markets where inflation is set to decelerate.”
Indian and Turkish local 10-year yields plunged to 16- and 17-month lows on expectations that cheaper oil will lead to policy easing.
Non-oil currencies were kept in check by a firmer dollar , though Indian stocks touched new record highs, Chinese equity markets rose 2 percent while Istanbul hit six-month peaks.
But heavy falls in oil firms such as Hungary’s MOL , Poland’s PGNiG and Romania’s OMV Petrom took a toll on bourses in these countries.
For GRAPHIC on emerging market FX performance 2014, see link.reuters.com/jus35t
For GRAPHIC on MSCI emerging index performance 2014, see link.reuters.com/weh36s
For GRAPHIC on MSCI emerging Europe performance 2014, see link.reuters.com/jun28s
For GRAPHIC on MSCI frontier index performance 2014, see link.reuters.com/zyh97s
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see )
Additional reporting by Karin Strohecker; Editing by Kevin Liffey